7.  In the Transport Act 1985(1)—

(a)in sections 7(15)(b) (meaning of “traffic authority” in Scotland) and 105(1) and (2) (travel concessions) for the words “region or islands”, there shall be substituted the words “local government”;

(b)in section 63(7) (passenger transport in other areas), for the words from “(as” to “islands”, there shall be substituted the words “, in Scotland, a”;

(c)in sections 63(9)(a) and (10)(b) (passenger transport in other areas) and 64(1)(a) (consultation on certain policies) for the words “regional or islands”, there shall be substituted the words “in Scotland”;

(d)in sections 66(1) (councils not empowered to run bus undertakings), 72(2)(a) and (5)(c) (public transport companies), 78(1) (provision of services for public transport companies) and 79(1), (4), (6), (8) and (10) (loans to public transport companies), for the words “regional council”, there shall be substituted the words “council (other than the council for Orkney Islands, Shetland Islands or Western Isles)”;

(e)in section 75(1) and (4) (public transport companies: powers of investment and disposal), for the words “or a district or regional council”, there shall be substituted the words “, a district council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles)”;

(f)in section 84(1)(a) (compensation for loss of employment etc.), for the words “or regional council”, there shall be substituted the words “council or, in Scotland, a council (other than the council for Orkney Islands, Shetland Islands or Western Isles)”;

(g)in section 137(1) (general interpretation), after the definition of “bus substitution service” there shall be inserted the following definition—

• ““council”, in relation to Scotland, means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994;”; and

(h)in paragraph 6(1) of Schedule 6, in the definition of “relevant authority”, for the words “, regional or islands”, there shall be substituted the words “council or, in Scotland, a”.